Chanel reportedly raises 700 million euros on the private debt market

The news reported by financial analyst Bloomberg has attracted a huge interest from the financial world and the fashion world: Chanel is said to issue a 700 million euro bond, according to sources close to the deal.

The transaction would take the form of a private placement: a form of private trading that gives blue-chip companies direct access to institutional investors. By employing this strategy, companies can bypass the risk associated with volatile public credit markets.

The London-based luxury house founded by Mademoiselle Chanel joins a number of major European companies which, in recent times, have chosen to raise funds through private equity. These include the high-end liqueur producer Rémy Cointreau, which saw its sales drop significantly in the first quarter of the 2024-2025 financial year. The spirits sector is one of the hardest hit by the crisis, even if the gloomy period affects the entire luxury sector. This is why groups are reacting by implementing new financial and strategic tools.

For the moment, Chanel is one of the major groups successfully facing up to this complex moment, but all indications are that the company wishes to anticipate a possible slowdown in sales. The house owned by the Wertheimer family recorded significant growth last year: sales amounted to $19.7 billion, with a positive jump of +16% on the previous year. 

The bonds issued by Chanel in this new transaction would have a maturity of between 10 and 12 years, and the entire operation would be managed by Société Générale and the American bank Goldman Sachs. For the time being, the two banking institutions have declined to communicate with the press to confirm, deny or give details of the operation.

Chanel's decision - if confirmed - comes after the company warned of increasingly difficult conditions in the luxury goods industry. In a commentary on its 2023 results, Chanel CFO Philippe Blondiaux warned this spring that “after three years of exceptional growth for our sector, we are entering a more difficult period”. Chanel's margins could come under pressure in the medium term due to the company's high level of investment and the general slowdown in growth.